The Bank of England said Britain’s inflation rate may already have peaked and that two of its policy makers believe interest rates are already high enough to drain pricing pressure.
The UK central bank lifted its benchmark lending rate a half point to 3.5%, the ninth increase in a year aimed at taming soaring prices and the highest level since the start of the global financial crisis in 2008.
“The majority of the committee judged that, should the economy evolve broadly in line with the November Monetary Policy Report Projections, further increases in bank rate may be required,” Governor Andrew Bailey wrote in a letter to Chancellor of the Exchequer Jeremy Hunt.
This verbiage differs significantly from the warnings delivered by the ECB and the Fed over the last few days. Both continue to suggest there is significant need for additional interest rate hikes. At her news conference today Christine Lagarde appeared to be channeling Margaret Thatcher in her statement that today’s decision should in no way be construed as a pivot.Click HERE to subscribe to Fuller Treacy Money Back to top